ATO Interpretative Decision
ATO ID 2004/17 (Withdrawn)
Excise
Energy Grants (Credits) Scheme: on-road - vehicle for transporting passengers or goods - prime moverFOI status: may be released
-
This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.
Despite its withdrawal, this ATO ID continues to be a precedential ATO view in respect of the period the Act was in force, 1 July 2003 up to and including 30 June 2012.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is a prime mover a 'vehicle for transporting passengers or goods' for the purposes of section 42 of Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. A prime mover is a 'vehicle for transporting passengers or goods' for the purposes of section 42 of the EGCSA.
Facts
An entity operates prime movers with a gross vehicle mass (GVM) of 20 tonnes or more.
Prime movers are designed to haul, and bear part of the mass of semi-trailers, which are in turn principally designed to carry goods.
Prime movers are regarded by registration authorities as heavy transport vehicles.
Reasons for Decision
Section 42 of the EGCSA specifies a number of circumstances when a client will be entitled to an on-road credit for the use of diesel fuel or alternative fuel in a registered vehicle that has a GVM of 20 tonnes or more. The section specifies two different levels of entitlement, depending on the nature of the vehicle.
If the vehicle is a vehicle for transporting passengers or goods, an on-road credit is available for eligible fuel used in operating the vehicle on a road in Australia.
However, if the vehicle is not a vehicle for transporting passengers or goods, the on-road credit only applies to the movement of the vehicle to a place (whether or not on a road) where it is to operate, and from a place (whether or not on a road) where it has operated.
In determining whether a vehicle is a 'vehicle for transporting passengers or goods', the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999 should be considered, as it contains the same terminology that appears in the EGCSA. When discussing the eligibility of 'vehicles for transporting passengers or goods', the Explanatory Memorandum refers to vehicles that are;
...
designed
for transporting passengers or goods... [emphasis added]
The Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003 and the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003 provides an example of a vehicle that is not for transporting goods or passengers.
Paragraph 2.8 of the Explanatory Memorandum states:
...If a vehicle is not for transporting goods or passengers (e.g. special purpose vehicles such as mobile cranes), it will only be eligible for the movement to or from the place where it is to be, or has been used.
Consequently, a vehicle will be a vehicle for transporting passengers or goods if:
- •
- it is designed for the purpose of transporting passengers or goods; and
- •
- is not a special purpose vehicle.
A prime mover, while itself incapable of transporting passengers or goods, is specifically designed to haul semi-trailers, which in turn are principally designed to carry goods. It is not possible to transport goods in a semi-trailer unless the semi-trailer is being hauled by a prime mover.
Consequently, a prime mover is regarded as a vehicle designed for the purposes of transporting goods.
In addition, prime movers are regarded by registration authorities as transport vehicles rather than special purpose vehicles.
As a prime mover is designed to transport goods and is not regarded as a special purpose vehicle by registration authorities, it is a 'vehicle for transporting passengers or goods' for the purposes of section 42 of the EGCSA.
Date of decision: 6 January 2004
Legislative References:
Energy Grants (Credits) Scheme Act 2003
section 42
ATO ID 2003/884
ATO ID 2003/1075
ATO ID 2004/19
Other References:
Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999
Explanatory Memorandum to the Energy Grants (Credits) Scheme Bill 2003
Explanatory Memorandum to the Energy Grants (Credits) Scheme (Consequential Amendments) Bill 2003
Keywords
EGCS on-road
Vehicle for transporting passengers or goods
ISSN: 1445-2782
| Date: | Version: | |
| 6 January 2004 | Original statement | |
| You are here | 1 July 2012 | Archived |